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MNI BRIEF: Powell Says More Moderate Pace of Hikes Makes Sense

(MNI) WASHINGTON

Almost all Federal Open Market Committee officials think additional interest rate increases are needed but at a more moderate pace, Federal Reserve Chair Jerome Powell said Wednesday.

"The level to which we raise rates is actually a separate question of the speed with which we move," he said. "Earlier in the process speed was important, it's not very important now."

"Given how far we've come, it may make sense to move rates higher but to do so at a more moderate pace," he told the House Financial Services Committee at a semi-annual hearing on monetary policy.

The FOMC held rates at a 5%-5.25% target range last week but most officials wrote down two or more quarter-point hikes by year-end. (See MNI POLICY: Fed Most Divided Since Start Of Hikes, More Loom)

MNI Washington Bureau | +1 202-371-2121 | jean.yung@marketnews.com
MNI Washington Bureau | +1 202-371-2121 | jean.yung@marketnews.com

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